Answer ALL questions in this section.

Describe the principles of corporate governance and discuss how effective governance

contributes to financial stability and investor confidence.

$(6$ marks$)$

Define and distinguish between financial accounting and management accounting. $(6$ marks$)$

Explain possible reasons for the following:

a$.$ An increase of gross profit from $24\%$ to $27\%$ at ATM Supermarket.

$(6$ marks

b$.$ A decrease in Return on Capital Employed from $16\%$ to $12\%$ at a cement manufacturing

firm.

$(6$ marks$)$

c$.$ A gross profit margin of $55\%$ and a net profit margin of $5\%$

$(6$ marks$)$